Cryptocurrencies paved the way for many new activities. Some people are playing crypto games, others use digital coins as part of their trading strategies. Also, many people simply like to hold them and sell when the price is right (hodling).
Cryptos also made room for all kinds of business models. Most of them are already existing models, but they now feature cryptocurrencies and blockchain technology, which fundamentally changes how they operate.
In this article, we’re going to explore some business models that use cryptocurrencies as their basic element. Some of them turned out to be quite successful. You might have heard of them already.
Crypto Gambling platform
One industry that really embraced cryptocurrencies is online gambling. Playing games of luck has never been easier than with crypto money. Nowadays, gamblers can enjoy fast deposits and withdrawals and play a wide array of games, from enjoying tower.bet races to betting on sports. Therefore, opening an online casino or sportsbook that accepts Bitcoin or other cryptocurrencies could be the right way to go.
Online casinos are all over the place, and some of them are very popular among crypto gamblers. Therefore, you’ll need to work hard on promoting your platform to become competitive in the market. But if you succeed, the crypto gambling platform will be your cash cow!
The thing we’re going to continue with is probably an essential business model that you can stumble upon — cryptocurrency development. Simply put, cryptocurrencies made many things regarding finance easier and more convenient, and the business world became quite aware of that. Nowadays, all kinds of businesses want to transition to using cryptos and developing ecosystems of their own. That’s why they need cryptocurrency specialists who will do just that for them.
Cryptocurrency development requires coding skills in addition to finance-related knowledge. Starting a crypto development company will definitely land you a lot of work right from the start. The only problem is that there’s still a serious lack of professional crypto developers.
One of the favorite activities for many cryptocurrency owners is trading digital currencies. Since most cryptos are very volatile, they are a good source of making a profit. You just have to apply the right trading strategy and use the right tool for trading. These tools are usually referred to as cryptocurrency exchanges.
An exchange lets you swap one crypto for another, and some even let you use fiat money to do that. Tens of thousands of crypto owners around the globe actively trade cryptocurrencies. That’s why starting a crypto exchange is widely regarded as a lucrative business model. The market is very competitive, as there are already plenty of exchanges, but it’s also open to innovation, given that it’s still pretty new. Therefore, each innovative feature could give you a slight advantage, as traders are also looking for various features that will further facilitate the trading process.
Cryptocurrencies should be stored somewhere. Pieces of software that keep your digital money safe and secure are called crypto wallets. There are already many businesses that built their business models around them. Wallets use all kinds of security measures, but most of them are very similar in their core.
If you wish to start a crypto wallet, you should also understand that the market is full of similar services. So, make sure to research the niche well before taking the first step.
There are also several different versions of hardware wallets that add an extra layer of security to crypto owners. The competition among hardware wallet businesses is not as stiff simply because there are much fewer of them. On the other hand, making a hardware wallet is a much more difficult process.
Blockchain technology is the primary fuel behind cryptocurrencies. It’s what makes cryptos the way they are today — decentralized. However, blockchain can nowadays be used to make all different kinds of decentralized platforms or apps. That’s what makes blockchain developers really wanted, especially among enterprises looking to switch to this type of doing business. Starting a service that offers blockchain development is very lucrative nowadays. Besides, focusing your business model on this type of activity could prove fruitful.
Blockchain is still a very young technology. Hence, there aren’t many top-notch professionals. So, it would require a lot of work to start such a company and be able to meet the needs of customers.
We checked crypto holding by covering wallets and crypto trading by covering exchanges. What else can one do with cryptocurrencies? Well, pay attention to ICO. The abbreviation ICO stands for Initial Coin Offering. That’s not quite a business model, but it’s one of the innovative ways to finance your idea or startup using the power of cryptocurrencies. ICO investors will buy your tokens even before you start working on your project.
You need to create a detailed white paper and tell investors how the tokens are going to be included in the ecosystem of your business. Moreover, you need to discuss your idea and attract an army of investors who’ll buy the token and support you.
Final Thoughts: Feel Free to Explore Crypto Business Models
Crypto businesses are blooming as the entire industry is still relatively new. There’s still room to explore new and innovative business models that revolve around cryptocurrencies and pose a good opportunity to make a profit.
We presented some of the most popular business models. Still, you should do your own research and find additional business models that may seem interesting for entering the world of crypto businesses.
It’s safe to say that cryptos still haven’t shown their full potential. That’s why you should be on the lookout for every crypto-related breakthrough, as they can be a good basis for creating a new business model.